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FG Pays N1 Trillion Monthly As Petrol Subsidy — Pinnacle Oil MD

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In a revelation that underscores the ongoing challenges in Nigeria’s oil sector, Pinnacle Oil and Gas Limited has disclosed that the country is incurring about N1 trillion every month on petrol subsidies.

This disclosure was made by the Managing Director/CEO of the indigenous oil and gas company, Robert Dickerman, during the Nigeria International Energy Summit (NIES) held in Abuja.

Despite the government’s efforts towards deregulation in the downstream sector, the persistence of such a hefty subsidy indicates a significant financial burden on the nation’s economy.

The subsidy mechanism, intended to make petrol affordable for Nigerians, has inadvertently resulted in the product being cheaper within the country compared to neighbouring nations.

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This price disparity has been identified as a key driver for the smuggling of petrol across borders, further complicating the subsidy issue.

Speaking at the forum’s panel session six, which focused on Nigeria’s Downstream Sector, Dickerman highlighted the paradox that, despite substantial progress in the industry, the massive subsidy is a clear indication of the challenges still facing Nigeria’s oil and gas sector.

He said the situation not only affects the government’s finances but also impacts the operational dynamics of companies within the sector, like Pinnacle Oil and Gas, which operates across the entire downstream value chain.

Dickerman stated that the continued payment of subsidies at such a scale raises questions about the sustainability of such expenditures and the need for more effective policies to address the underlying issues.

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He said, “Nigeria has a long history of allocating resources to oil and gas production at the expense of most other economic and social programs. To balance this, there has been a long-standing policy to mitigate consumer costs via palliatives such as fuel and food subsidies.

“But one of the net effects of oil money is underinvestment in local production, manufacturing and other value-added activities that could generate foreign currency through exports. There has also been a large under investment in the maintenance and upgrade of existing infrastructure including electricity, roads, health care, water, waste, education and financial infrastructure such as consumer credit.

As a result, we have a huge negative trade deficit, except for crude oil and LNG, and our banks are not sufficiently capitalized to support significant new capital programs.

“With legacy monetary policymaking currency exchange difficult, we desperately need Foreign Investment. This is a reality. So the best policy during this time of crisis is a national policy to transform our economy/regulations/laws to accommodate and encourage FDI.

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“Foreign investors, foreign lenders and government-run DFIs have been very clear about what they want to see: Conservative fiscal policy, tackling corruption, enabling competitive markets, and enforcement of fairness in markets through policy, regulation and the ability to enforce contracts. Keeping that context in mind, I want to point out that there is still a massive subsidy in PMS, albeit in the FX portion of PMS Price, not the global price in dollars.

“The consequences of this subsidy are: The cost of gasoline in Nigeria is the lowest in Africa by far, which encourages smuggling out, further depriving Nigeria of value. Smuggling causes Nigeria to subsidize neighbouring countries even while our economy struggles. The cost is hurting the entire budget, Federal and State, as critical programs cannot be funded to pay this subsidy. It is currently calculated to be about 1 trillion Naira/month.

“Also, with this subsidy in place, ceasing subsidy payments would result in no petrol supply, if there are no refineries producing gasoline. All supplies come from the international market, which will only sell at market prices.

“There is no competition in bulk supply, as only the national champion owned by the government can import. Wholesale and retail prices are set based on their subsidized cost and they determine who gets supply. Without a competitive market, foreign investors are discouraged from investing in this sector in Nigeria.

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“The solution to this problem seems obvious, even acknowledging the daily struggles most citizens and companies have today with reduced purchasing power, high inflation, high interest costs and high unemployment that exists today. Short-term palliatives have never resolved long-term issues in any nation at any time in history. We need long-term solutions.”

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Kenya Airways apologises to NCAA for mistreating passenger

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Kenya Airways officials have tendered an unreserved apology to the Nigeria Civil Aviation Authority (NCAA) and a Nigerian passenger: Gloria Omisore, following a complaint of mistreatment during a recent flight.

The airline also retracted previous statements regarding the incident, admitting fault for allowing Omisore to board a flight from Lagos without the necessary transit visa.

The apology came during a meeting convened by the NCAA attended by airline representatives including Country Manager James Nganga, Station Manager Eric Mukira, and Duty Manager Ezenwa Ehumadu, alongside NCAA Director of Consumer Protection and Public Affairs, Michael Achimugu.

Omisore, a British resident permit holder without a Schengen visa, had purchased a ticket for a Manchester-Paris-Nairobi-Lagos (inbound) and Lagos-Nairobi-Paris-Manchester route.

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While her inbound journey proceeded without issue, the airline failed to identify the need for a Paris transit visa for her outbound leg until she reached Nairobi.

Although Kenya Airways offered a direct flight to London at no extra cost after a 17-hour layover, the situation escalated when Omisore’s request for accommodation and care due to the airline’s error was denied, leading to what the NCAA termed an “unruly” exchange.

In a prior statement, Kenya Airways claimed Omisore refused the re-routing and acted disruptively. They have since retracted this, admitting their error and apologizing for the “obfuscation of facts.”

The NCAA had given Kenya Airways 48 hours to verify a phone call made by Omisore on December 7, 2025, where she reportedly inquired about her eligibility to fly the route.

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The authority also expressed strong disapproval of comments made by airline staff allegedly insulting the office of the Nigerian President, stating the airline could not act with impunity towards Nigerians.

The country manager apologized for the staff’s behavior, promising disciplinary action.

The NCAA has reiterated its call for all airlines operating in Nigeria to adhere to regulations and establish dedicated, trained customer relations desks or officers to handle such issues.

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Govt releases power tariff hike guidelines for Discos

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As controversies trailed the purported electricity tariff hike by the Federal Government, the Nigerian Electricity Regulatory Commission has issued regulations on the procedure for tariff reviews.

The latest order, signed by NERC Chairman, Sanusi Garba, stated that pursuant to the provisions of the Electricity Act 2023, the commission is obligated to review and approve a fair tariff to allow licensees to recover prudent costs and a reasonable return on capital invested in the business for the provision of electricity services.

It stated that Section 116(1) of the Act provides that activities in the generation, transmission, distribution, trading, supply, system operation, and electricity distribution franchising shall be subject to tariff regulation, saying Section 116(2) further provides for the commission to develop a tariff methodology that allows licensees operating efficiently to recover the full efficient costs of their business activities, plus a reasonable return on investments by shareholders.

“In exercise of the powers conferred in Section 116 of the Act, the commission has developed and adopted the Multi-Year Tariff Order Methodology as an incentive-based price regulation framework for the determination and projection of tariffs payable in the Nigerian Electricity Supply Industry,”

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NERC stressed that the Multi-Year Tariff Order methodology provides for a major review of electricity tariffs every five years, during which all tariff assumptions are reviewed to ensure the industry’s viability and efficiency.

One year before the major tariff hike, the commission said it would issue a notice to all licensees about its intention while requesting them to submit applications for the review of tariffs supported with necessary documentation within 120 days of the notice.

“The commission shall, one year before the expiration of the major tariff review order in force or as may be considered necessary, issue a notice to all licensees about its intention to commence the process for a major review of the existing tariff. The notice shall be published in three national dailies and on the website of the commission.

“The Notice shall request for submission of applications for the review of tariffs supported with documentation that includes but not limited to audited financial statements, budgets, investment plans (in line with prevailing guidelines on Performance Improvement Plans), and proof of wide consultation with customers in the licensees’ service area concerning the proposed filing of the application for tariff review and any other information as deemed necessary by the commission,” the regulation stated.

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The regulator said an initial review of the applications shall be completed and a consultation paper developed no later than 90 days after the deadline for the submission of the applications.

“The consultation paper developed by the commission shall outline the basis for the tariff review applications by the licensees including their proposals on capital investments, service improvements, new connections, loss reductions, reset of tariff assumptions if any, and possible impact on rates payable by the affected customers.

“The consultation paper shall be published on the commission’s website and public notices issued soliciting comments with a timeline of 21 days for submission by stakeholders. The commission shall within 90 days from the publication of the consultation paper review all comments and schedule and conclude a Rate Case Hearing, having regard to the stakeholders’ responses to the consultation paper,” the regulation stated.

It was stated that all comments and observations received from the public on the consultation paper and the Rate Case Hearing shall be examined and considered in the development of a draft tariff order for the consideration of the commission.

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Upon due consideration of the outcomes of the general stakeholders’ presentation and the Rate Case Hearing, the commission said it shall consider and approve a Major Tariff Review Order within 30 days from the date of the Rate Case Hearing held at the commission.

“Any licensee whose tariffs have been reviewed shall communicate the outcome of the tariff review to its customers vide its website and other communication channels,” it said.

For monthly or minor reviews, the commission said it shall review the prevailing operating end-user tariffs and changes may be made thereto to account for changes in generation fuel costs, the Nigerian and United States inflation rates, United States dollar exchange rate to the naira, and average generation availability relative to the preceding month.

The commission also stated that it may, at its discretion, conduct a minor review of end-user tariffs at other short periods but no longer than six months.

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The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has said there would be an electricity tariff review in a few months.

Verheijen said the current N200bn monthly electricity subsidy benefits only the wealthiest 25 per cent, leaving the poor masses in the dark.

She said the government would put in place a subsidy system that works for the masses.

“Today, the Federal Government spends over N200bn per month on electricity subsidies, but much of this support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance. To address this, the Federal Government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families,” she stated.

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UTME 2025: JAMB suspends two centres for infraction

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The Joint Admissions and Matriculation Board (JAMB) has suspended two of its centres for 14 days for allegedly uploading blank registration template.

The two centres are: the Federal College of Education (Technical) Potiskum Computer Based Test (CBT) Centre 2 in Yobe State and a CBT Centre at Otukpo in Benue State.

JAMB’s Spokesman Fabian Benjamin announced the suspension in a statement yesterday in Abuja.

The statement said the suspension was meant to warn CBT centres never to commit such actions again.

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It also advised centres to ensure that all templates are accurately filled out before uploading.

“This suspension, which took effect on Tuesday, was as a result of procedural breach that poses a threat to security measures implemented to prevent infractions and to ensure the integrity of the information provided to the Board in case of any contestation.

“Candidates are required to manually fill in their details before uploading them to the registration portal. The template containing these details must also be uploaded as evidence of their choices and the information provided.

“However, some centres, despite being fully briefed on the implications of failing to adhere to these guidelines, chose to disregard them by submitting blank copies of the registration template in a misguided effort to increase candidate submissions.

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“Any centre found uploading blank templates in the future will face cancellation and will be barred from participating in the Board’s activities,” the statement said.

The 2025 UTME registration began on February 3 and will be concluded on March 8.

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